Insurance Law Update

§Contractor Negotiating Insurance Claims Prohibition§

As a state-licensed public insurance adjuster, Milton Faber and Faber Adjusting are dedicated to staying up-to-date with the latest insurance news and laws in Texas. This includes a regular review of the register to ensure that all services provided by Faber Adjusting align with the state's current laws and regulations.

Contrary to some remediation and restoration contractors who may claim to handle the entire loss recovery process and negotiate with insurance adjusters on behalf of policyholders, Texas law prohibits contractors from resolving insurance claims on behalf of consumers. Section 4102.163 of the Texas Insurance Code explicitly states that only licensed public insurance adjusters, such as Faber Adjusting, are authorized to negotiate and settle insurance claims on behalf of policyholders.

As a result, when you work with Faber Adjusting, you can trust that your insurance claim will be handled in compliance with Texas law and that your best interests are always at the forefront of every negotiation and settlement process. With a wealth of experience and expertise, Faber Adjusting is dedicated to maximizing your claim settlement and ensuring that you receive the full benefits of your insurance policy.

The practice of contractors handling the insurance claim process on behalf of policyholders may seem innocent, but it is in fact prohibited by the Texas Insurance Code. As per the code, contractors are not allowed to act as public adjusters or advertise their services in adjusting claims for any property for which they provide or may provide contracting services. This includes negotiating, adjusting, or settling the value of an insurance claim, even with the consent of the insured.

The Texas Insurance Code states clearly that a contractor may not engage in business activities that are the domain of licensed public insurance adjusters. Doing so constitutes acting as a public adjuster without a license or in conflict with a valid license, which is strictly prohibited.

It is important for policyholders to be aware of this regulation, as engaging a contractor to handle the insurance claim process can have adverse consequences, including violation of state laws, reduced settlement values, and prolonged resolution times.

For a hassle-free, efficient, and successful insurance claim process, policyholders are encouraged to seek the services of a licensed public insurance adjuster like Faber Adjusting. With their expertise, experience, and commitment to ethical practice, they are well-equipped to represent the interests of policyholders and ensure they receive a fair settlement.

If you have suffered a significant insurance loss, it is important to make the right decisions from the beginning. Hiring a licensed Public Insurance Adjuster, like Faber Adjusting, can provide a range of benefits that ensure you receive a fair and full settlement from your insurance company.

A Public Insurance Adjuster like Faber Adjusting, works solely for you, the policyholder, ensuring that your interests are protected throughout the claims process. They will thoroughly evaluate your insurance policy, inspect the damage, and prepare a comprehensive claim on your behalf, taking into account all potential sources of coverage. With their expertise and experience in negotiating with insurance companies, you can be confident that you are getting the best possible outcome.

If you are approached by a contractor who claims they can "handle, work with, or negotiate" with your insurance company, it is important to be cautious. While contractors may have the best of intentions, they are not licensed to engage in the business activities of a Public Insurance Adjuster. Only licensed Public Insurance Adjusters, like those at Faber Adjusting, are authorized to act on behalf of the policyholder during the claims negotiation process.

If you have any doubts about your contractor’s actions or if you need clarification on any aspect of the claims process, contact Faber Adjusting. Our team of licensed experts will be happy to provide you with guidance and insight on whether to continue with your current contractor or hire a Public Insurance Adjuster to assist with your claim. Don't wait, take advantage of the added value of hiring a Public Insurance Adjuster today.